For Coal of Africa this development completes the suite of regulatory authorisations required for the Makhado project.
In April 2016, an appeal was lodged against the decision by the Department of Water and Sanitation to grant an integrated water use licence to Baobab Mining and Exploration for Makhado in terms of Section 41 of the South African National Water Act (Act 36 of 1998).
Following representation by Coal of Africa in May 2016 and February 2017, the minister of the department exercised her discretion and lifted the suspension in terms of Section 148 (2) (B) of the Act.
The integrated water use licence is now executable. The appellants have the opportunity to voice their concerns through the water tribunal.
The lifting of the appeal by the minister and the recently announced finance facility by the Industrial Development Corporation of South Africa (IDC) are key steps in the advancing of the Makhado project.
“The lifting of the suspension of the integrated water use licence by the minister is welcomed as this decision completes the suite of regulatory authorisations required for the Makhado project,” states Coal of Africa CEO, David Brown.
“It further confirms government’s support for the Makhado project and its potential to drive sustainable socio-economic transformation. We will continue to work with all parties to ensure that the matter is completed satisfactorily and furthermore to secure the remaining surface rights,” he continues.
[quote]In April this year Coal of Africa entered a loan agreement with the IDC and Baobab Mining and Exploration.
The loan will be used to advance the operations and implementation of the Makhado coal project – triple-listed Coal of Africa’s flagship project.
Baobab Mining and Exploration is a subsidiary of Coal of Africa and the owner of the mining rights for the Makhado coal project, in terms of which the IDC shall advance loan funding up to R240 million to Baobab Mining and Exploration for use at the Makhado project.
The IDC will advance to Baobab Mining and Exploration in two equal tranches of R120 million upon written request from the company.
Subject to the provisions of the loan agreement Coal of Africa shall stand as surety for Baobab Mining and Exploration’s obligations to make payment of the required amount in instances in which Baobab Mining and Exploration defaults on such payments.
All images courtesy of Coal of Africa